Friday, January 27, 2017

Top Wall Street Chartered Technical Analyst (CTA), Ralph Acampora of Altaira Wealth Managementreturns with his outlook on US equities and the PMs.

With the Dow Jones Industrials over 20,000, a new record, our guest outlines why stocks could still be undervalued by 10% and even surprise the bulls.

Pushing shares higher, expectations of an economic renaissance fomented by the new Administration.

The promise of reduced corporate regulations and stringent import levies could make US exports more competitive, boosting corporate profits and US shares. Relatively high domestic interest rates compared to the PBoC's -3.5% and Europe's -1.00% rates makes US dividend payments enticing.

Amid hawkish comments from the Fed Chairperson last week, one of the biggest beneficiaries of higher rates will continue to be US financial institutions.

In addition, US home construction firms and related sectors such as concrete, lumber to home repair businesses could benefit from infrastructure rebuilding.

The risk of higher rates continues to weigh heavily on the US Treasury indexes, currently unwinding from a 30 year bull market.

The net result is an inflow of billions of dollars into US equities and the PMs.

Bill Murphy of GATA.org and the host discuss the prospects for the PMs sector in 2017.

According to Bix Weir, a 1/1 gold / silver ratio is merely a matter of time as emerging technologies increasingly rely on silver.

Case in point, silver is key to smog correction devices, which are in high demand in China due to the rise of the increasingly affluent middle class.

Just as the Dow Jones Industrials sets a new all time benchmark of 20,000, weak dollar comments from the new Treasury Secretary Steven Mnuchin.

The new Administration has plans on the table to revamp the crumbling domestic infrastructure.

Raw material purchases and related jobs / activities could boost national price levels to the benefit of PMs investments.

The technical case supports the nascent silver bull market thesis - the silver index is nearing a Golden Cross on the weekly chart.

The XAU is leading the metals charge on a relative basis - another indication that institutions are anticipating a multi-year PMs price advance.

The duo discuss the implications of the sea change event for the PMs sector. Although the Fed retains carte blanch authority to absorb toxic debt, the threat of higher rates / yields is jeopardizing even their deep pockets.

The broad proliferation of exchange traded funds (ETFs) continues to flood the US equities market - company shares no longer dominate their own exchanges.

The Bitcoin ETF (GBTC), the brainchild of the infamous Winklevoss Twins, of Facebook, Social Network fame, remains the sole means to invest via markets.